Record revenue and continued >20% growth validate Arm's AI data center thesis, but the revenue quality is notably boosted by $704M in related-party license revenue from SoftBank — a source that may not recur at the same magnitude. Watch for the Arm AGI CPU production ramp in H2 2026 and the Qualcomm trial in Q4 2026, which introduces binary legal risk. The elevated R&D spend (+34%) signals heavy investment in the silicon pivot, which could weigh on near-term margins.
Price Chart
Executive Summary
Arm Holdings filed its annual report (20-F) for fiscal year ended March 31, 2026, reporting record revenue of $4.92B (+23% YoY), record non-GAAP EPS of $1.77, and its third consecutive year of >20% revenue growth. The filing also details the expansion into production silicon with the Arm AGI CPU, significant related-party revenue from SoftBank Group ($704.4M in license revenue), and ongoing litigation with Qualcomm set for trial in Q4 2026.
Key Facts
- FY26 total revenue of $4.92B, up 23% from $4.01B in FY25
- License & other revenue grew 25% to $2.31B; royalty revenue grew 21% to $2.61B
- Non-GAAP EPS of $1.77 was a record
- Revenue from related parties was $1.50B, up 82% YoY, driven by $704.4M in license revenue from SoftBank Group
- Arm AGI CPU launched; production expected by end of calendar 2026; $2B+ customer demand for FY27-FY28
- Operating income grew to $900M (18% margin) from $831M (21% margin) in FY25
- R&D spend grew 34% to $2.78B, driven by investments in next-gen products like Arm AGI CPU
- Cash from operations was $1.52B vs $397M in FY25
- CEO Rene Haas received FY26 total compensation of ~$60.6M
- SoftBank Group owns ~86.4% of shares; 769M shares (72% stake) pledged as collateral under margin loan facility
- Qualcomm litigation ongoing; trial expected in Q4 2026
- Overall effective tax rate swung to 21.9% expense vs (10%) benefit in FY25
Financial Impact
Revenue grew $913M YoY (+23%), operating income up $69M, net income up $112M to $904M
Risk Factors
- Heavy reliance on SoftBank Group for a large portion of license revenue ($704M) — this may not be repeatable
- Arm AGI CPU introduces new execution risk — manufacturing, supply chain, and competitive conflict with existing licensing customers
- Ongoing litigation with Qualcomm (trial Q4 2026) could disrupt a major customer relationship (9% of FY26 revenue)
- SoftBank Group's 72% stake is pledged as collateral under a margin loan, creating overhang risk if margin calls force share sales
- Export controls to China could limit future licensing opportunities
- R&D spend growth (+34%) is outpacing revenue growth (+23%), pressuring near-term margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001973239-26-000097 |
| Exhibit: ex111-insidertradingpolicy.htm | 0001973239-26-000097 |
| Exhibit: ex121-ceocertfye26.htm | 0001973239-26-000097 |
| Exhibit: ex122-cfocertfye26.htm | 0001973239-26-000097 |
| Exhibit: ex81-subsidiariesofarmhold.htm | 0001973239-26-000097 |
| Exhibit: ex131-ceocertfye26.htm | 0001973239-26-000097 |
| Exhibit: ex151-auditorconsentfye26.htm | 0001973239-26-000097 |
| Document: 0001973239-26-000097-index-headers.html | 0001973239-26-000097 |
| Document: 0001973239-26-000097-index.html | 0001973239-26-000097 |
| Document: 0001973239-26-000097.txt | 0001973239-26-000097 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | 144 | $255.21 $321.31 | ▲ +25.90% | ▲ +26.00% | $292.34 (+14.55%) |
Aug 10, 2026 7w ago | 6-K | $268.93 $264.23 | ▼ −1.75% | ▼ −0.69% | $292.34 (+8.70%) |
Jun 12, 2026 16w ago | Institutional Cluster | $380.81 $323.39 | ▼ −15.08% | ▼ −16.86% | $292.34 (−23.23%) |
Jun 4, 2026 17w ago | Insider Cluster | $342.93 $322.24 | ▼ −6.03% | ▼ −7.89% | $292.34 (−14.75%) |
May 26, 2026 18w ago | Insider Cluster | $302.71 $347.71 | ▲ +14.87% | ▲ +16.77% | $292.34 (−3.43%) |
May 26, 2026 18w ago | 20-F | $302.71 $347.71 | ▲ +14.87% | ▲ +16.77% | $292.34 (−3.43%) |
May 22, 2026 18w ago | Insider Cluster | $321.22 $351.95 | ▲ +9.57% | ▲ +11.51% | $292.34 (−8.99%) |
May 21, 2026 19w ago | Insider Cluster | $306.51 $377.90 | ▲ +23.29% | ▲ +24.71% | $292.34 (−4.62%) |
May 20, 2026 19w ago | 144 | $256.73 $439.46 | ▲ +71.18% | ▲ +70.44% | $292.34 (+13.87%) |
May 19, 2026 19w ago | Insider Cluster | $256.73 $439.46 | ▲ +71.18% | ▲ +70.44% | $292.34 (+13.87%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access